ESAF Small Finance Bank Limited
NSE:ESAFSFB
ESAF Small Finance Bank Limited
ESAF Small Finance Bank Limited is a IN-based company operating in Banks industry. The company is headquartered in Thrichur, Kerala. The company went IPO on 2023-11-10. ESAF Small Finance Bank Limited is a small finance bank with a focus on unbanked and under-banked customer segments, especially in rural and semi-urban centers. Its segments include treasury, wholesale banking, retail banking, and other banking operations. treasury. The treasury segment primarily consists of interest earnings on its investment’s portfolio, gains or losses on investment operations and earnings from its foreign exchange business. The wholesale banking segment provides loans to the corporate segment. The retail banking segment provides loans to non-corporate customers. The other banking operations segment includes para banking activities, such as debit cards, third-party product distribution and associated costs. Its advances comprise include micro loans, which comprises microfinance loans and other micro loans; retail loans, which includes gold loans, mortgages, personal loans, and vehicle loans; loans to financial institutions, and agricultural loans.
ESAF Small Finance Bank Limited is a IN-based company operating in Banks industry. The company is headquartered in Thrichur, Kerala. The company went IPO on 2023-11-10. ESAF Small Finance Bank Limited is a small finance bank with a focus on unbanked and under-banked customer segments, especially in rural and semi-urban centers. Its segments include treasury, wholesale banking, retail banking, and other banking operations. treasury. The treasury segment primarily consists of interest earnings on its investment’s portfolio, gains or losses on investment operations and earnings from its foreign exchange business. The wholesale banking segment provides loans to the corporate segment. The retail banking segment provides loans to non-corporate customers. The other banking operations segment includes para banking activities, such as debit cards, third-party product distribution and associated costs. Its advances comprise include micro loans, which comprises microfinance loans and other micro loans; retail loans, which includes gold loans, mortgages, personal loans, and vehicle loans; loans to financial institutions, and agricultural loans.
Profitability: ESAF Small Finance Bank returned to profitability in Q3 FY '26, with PAT reaching INR 7 crores after several challenging quarters.
Asset Quality: Both gross NPA and net NPA ratios declined significantly, with gross NPA at 5.6% and net NPA at 2.7%, while slippages fell sharply YoY.
Loan Growth: Gross advances grew by 13% YoY, and management expects FY '26 loan growth to end around 15–16%, accelerating to about 25% in FY '27.
Secured Lending: Secured assets now form 60% of gross advances, up from 45% a year ago, driven by strong growth in gold, MSME, agri, and retail loans.
Margins & Efficiency: Net interest margin improved to 6.6% from 5.9%, and pre-provisioning operating profit jumped 171% QoQ.
Guidance: Credit cost is expected to normalize to 2–3% by Q1 FY '27 and ROA to reach 1.5–2% by FY '28.
